Wednesday, 22 February 2012

If you are a first time home buyer now is
the perfect time to empower yourself and get in there while the going is still
good. You will soon be able to decide on
buying a home, depending on the outcome of today’s 2012 budget speech.

·Banks are easing up on their
lending criteria, which is a positive move in the right direction borrowing that much-needed money.

·Empower yourself if you are a
novice home buyer with the kind of knowledge that you will need when looking
for a bond or wanting to borrow money.

·Property is an important
investment, therefore location is key.

·Buy the cheapest home in the
best area; this way you will never lose value on your investment.

·When buying a home it is
important to take convenience, access to your job, and security as well as
safety into account.

·A home close to schools is
excellent for resale.

·If the area you have your eye
on is too expensive, then perhaps the suburb right next door is a good second
option.

·Noise levels also devalue homes;
therefore a home in a quiet area might be a better option.

·Interest rates are always a
factor to take into account; find out first what Pravin Gordhan has to say in his 2012 budget speech, and then make your decision according to what
the outcome of the latest budget as this will most certainly have an effect on
finances for the next 12 months.

·Buying a “renovator’s dream’
“is certainly an option, especially if you are deft with a hammer and nails.
Buying cheap in an excellent area and doing up a home is a very good option,
and many home owners find this to be the case.

·Aesthetic flaws are obvious,
but hidden problems are not that obvious when buying a home, therefore it might
be advisable to have the house inspected by professionals before putting in
that offer.

·If alterations were carried out
on the home, ensure that all the plans are in place when you sign on the dotted
line.

Before you buy your new home, wait for the
outcome of today’s 2012 budget speech,
and then make your next move.

A good point of entry is to start searching
for your dream home online, where you will find a plethora of choices, and also
the property section in newspapers in your area of choice. A good estate agent
will be able to advise you and point you in the right direction, making the
whole process a lot less emotional and stressful. Some banks are giving 100%
rates for bonds, but it is advisable to have a deposit in order to secure a
loan, and increase your chances of actually getting that sought-after bank loan
or bond.

After listening to Pravin Gordhan’s 2012 budget speech, and after doing some necessary
homework and having fine-tuned your plan to buying your first home, your next
step would be to approach your bank.

It seems as if the light is shining at the
end of the proverbial tunnel for those that need to buy homes and need bonds in
order to do so. According to Standard Bank, the largest player in the home
loans field, it is still possible to get that loan that you need.

Pravin
Gordhan will soon put us in the picture with his
much-awaited 2012 budget speech, and
this, too will have an all-important impact on the lending and housing market
in SA in 2012.

Here are a couple of practical points to
take into consideration prior to approaching your bank for that all-important
loan:

·Do a little research on the
area.

·Find out exactly what kind of
condition the house is in.

·Do some research into your
credit history; this is easily available online and you can make any necessary
adjustments if errors appear on your credit report. Compare these reports from
the three largest credit bureaus in SA.

·Armed with this kind of
knowledge you will always have the upper hand.

·Did you know that there are a
high percentage of errors that occur on credit reports? These should always be
checked on a regular basis so that your credit report is in a healthy state.

·Ask a professional estate agent
to assist in getting a comparable price list of the homes in the area; they
have access to graphs and information that is pertinent to this.

·Obviously, you will have to be
able to afford the property; affordability is the key in this exercise.

·If you are concerned that the
budget will affect your already tight purse strings, it might be best to wait
for after Pravin Gordhan has
delivered his SA budget speech, and
only then approach your bank for a loan.

·You might feel that the budget
does not really affect you in your everyday life; but if it is more taxes we
have to pay, higher interest rates on our borrowed money, more to fork out on
that glass of wine or packet of cigarettes, then it is wisest to hold on a
little longer before signing for that much-desired property you already have
your eye on.

·Put money aside when buying
your home; there are always costs that are hidden.

·100% bonds are not common, so
ensure that there is sufficient for transfer duties, deposits and anything else
pertaining to buying your property.

·Remember to add in attorneys’
fees and registration costs, too.

·Hidden expenses need to be
addressed, as you will always find there is a lot to be spent on added extras
such as electricity deposits and beefing up security.

·Don’t forget to build in your
home insurance, too.

If you feel you might be a little too tight
it is a good idea to wait and see what the 2012
budget speech will do for (or against) our borrowed monies from banking
institutions; it is always bet to make these important decisions through
careful planning.

·First things first; create a
needs analysis. Do you want a lock up and go scenario, or do you have a dog and
cat or a family to consider? Write this at the top of your “to do” list when investing in property in 2012.

·Location, location, location is
all-important. This will affect how much you will be able to borrow from the
bank, and this will also affect how much you will pay on your monthly insurance
premium. Buy the cheapest house in the best area, and you will never go wrong.

·Once you have heard what you
are in store for in 2012 after hearing the 2012
budget speech, you might want to decide how to invest your money
accordingly.

·Perhaps you would like to go
ahead anyway; although it is important to know how our money is going to be
spent according to Pravin Gordhan, it is also important to get into the housing
market, and now seems to be as good a time as any, whether the budget bodes
well or not.

·When you go house-hunting keep
your “to do” property shopping list with you at all times so that you do not
lose focus.

·When looking at location, it is
also important to take into consideration where you work, and where you spend
most of your social time.

·Fine-tune your list all the
time; your ideas might change, and especially so after hearing what the SA budget has in store for us.

·If you are a first time home
buyer then it might be a good idea to take someone older and wiser with you
when looking for property, as wisdom comes with age and two heads are always
better than one.

·Be on the lookout for any
pitfalls; as a first time buyer you might not be aware of these.

·Shop around at different
banking institutions and find out what the interests rates are. Even better
wait for the SA budget and then make
this decision based on those facts.

·The professionals will be able
to assist and guide you in the right direction; bond originators are
experienced and would be in a position to shop around on your behalf, taking
the leg-work out of this exercise.

·Acquaintances and friends who
have bought homes recently will have a good idea how to buy a home; why not ask
their advice?

·Always look for estate agents
who have got the most ”sold” boards in
the area you are interested in; THESE are the ones who know the area best, which
houses will be for sale. These agents will be the most professional and
successful in the area.

Your best financial indicator for borrowing
money to buy a home would be the 2012
budget speech, as this will be a good barometer on how our money is going
to be spent in the next twelve month period. Hopefully Pravin Gordhan will make many positive changes in SA, so that
everyone can benefit.

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Tuesday, 14 February 2012

So time for a bit of thought on such a romantic day! happy st valentines day to you and the bank of England!!!

Central banks try to raise the amount of
lending and activity in the economy indirectly by cutting interest rates. Lower
interest rates encourage people to spend, not save but when interest rates can
go no lower, a central bank's only option is to pump money into the economy
directly. That is quantitative easing (QE).The way the central bank does this
is by buying assets - usually financial assets such as government and corporate
bonds - using money it has simply created out of thin air. The institutions
selling those assets (either commercial banks or other financial businesses
such as insurance companies) will then have "new" money in their
accounts, which then boosts the money supply.

In March 2009, the
England Monetary Policy Committee (MPC) announced that it would reduce Bank
Rate to 0.5%. The Committee also judged that Bank Rate could not practically be
reduced below that level, and in order to give a further monetary stimulus to
the economy, it decided to undertake a series of asset purchases. Between March
2009 and January 2010, the MPC authorised the purchase of £200 billion worth of assets, mostly gilts – UK
Government debt. The MPC voted to begin further purchases of £75 billion in
October 2011 and, subsequently, at its meeting in February 2012 the Committee
decided to purchase £50bn to bring total asset purchases to £325bn but doubts linger over how well its policy of quantitative easing
is working

A Bank of England report into
the effect of the first round of QE suggested that the measure had helped to
increase gross domestic product by between 1.5% and 2%, indicating that the
effects of the programme had been "economically significant". QE worked in 2009. Deflation in the
cost of living (the all-items retail prices index measure) peaked at just under 2 per cent (i.e. the price level fell about 2 per cent)
in mid-2009. The money stock would have fallen something like 5-10 per cent
without QE. The plan to
lower bond yields has obviously worked with the 10yr bond falling by 39% in the
past 3 years. QE works by the Bank buying bonds in the open market with the
demand causing the yield to fall and their attractiveness as an investment to
fall as well. This has allowed the UK to maintain a level of bond auctions, and
public debt, without too much trouble from the ratings agencies or any
vigilante bond traders.

From
an inflation point of view the result is less certain. Inflation in the UK has
remained sticky throughout the crisis with CPI remaining above the Bank’s 2% ±
1% target since January 2010

Wednesday, 8 February 2012

South Africa has
been fortunate enough to not have been as severely subjected to the hammering
that Europe has had to endure. We can give credit to 3 major factors that have contributed
to this outcome:

A decade
of relentless increases of commodity prices

Excellent capital inflows from
foreigners

Good banking and stringent
monetary domestic systems

However, these
fine runaway trains may have run out of steam. Consistent high levels of
unemployment, aggravated by a mass influx of foreign “immigrants”; the severe
inefficiency of our age old deep-level mines, coupled by potential political
meddling and increasing costs of labour and electricity; and most importantly
the diminishing productivity of South Africa’s work-force in general; all
threaten the long-term outlook for SA as a whole. If the SA government does not
start reinvesting or re-subsidising in the world’s supposedly “next BIG commodity”
i.e. food, and start seriously addressing unemployment and non-productivity, then
South Africans may have a short road left to travel on. In my opinion, it is therefore significantly
important for South Africans to be doing one thing over the short/medium term: Investing and STOP spending! Grow some
wealth while the going is still good. Things for 2012 look above average on the
equity front with a good proportion of your returns to be expected from US
stocks. Stay away from commodity stocks. Commodity levels are situated way
above their fair values, which make commodity stocks even more overpriced.

Updates – Discovery Health

Many people were
left upset this year as Discovery Health seemingly drew back on some benefits
on their top end plan by imposing limits. Such limits generally only come about
when there is severe abuse and misuse of benefits, generally from a minority of
users. Members forget that they are just that, “members”. This implies that you are a member of “group” or “club.”
Your Medical Aid is not as such a policy as you think it may be. It is a
pooling of all members funds, to which Discovery health is then paid an administration fee to administer and
pay out benefits to those most in need of the funds. Discovery Health does in
no way become “more profitable” by not paying out on a benefit. I for one, as a
member of Discovery Health, have no tolerance for other members abusing the
“system” and for effectively prejudicing me and therefore personally embrace
the actions taken by the board of Discovery health.

Statement of the Month

“The optimist
claims that we live in the best of all possible worlds, and the pessimist fears
that this is true” – James Cabell

Tuesday, 7 February 2012

Of course you can get a loan with bad credit as there is no question that people with a bad credit score can also obtain a loan or a home loan, but before you approach a bank or originator, find out what’s on your credit report.

Obtain a copy of your credit check either online or by mail and look it over for errors, then get them removed immediately by calling Mytransunion, formerly known as ITC and Experien.

This can improve your credit rating and help you get approved for a loan you so badly want.

“Fish where the fish are.” - so follow the money even when looking for a loan.

For most of us in the sales and marketing side, prospecting is the
most challenging activity we do.

We hate the thought of picking up the
phone to make a living. No matter what product or service we sell, success in
sales is built through effective planning and prospecting.

Here are five ideas that will help:

1. Establish a routine. You
must schedule time for prospecting every day at preferably the same time. Do
not allow anything to interfere with your prospecting time. The salesperson who
has a set daily routine of making prospecting calls at a specific time and
adheres to this schedule without distraction has a massive advantage over
others

.

2. When is the best time to
prospect? The best time to make prospecting calls is when you have
the most energy. I always prospect early in the morning because that’s when I
have the most energy. It also gets me off to a winning start, which sets up my
day for success.

3. It gets easier after the first call. The first call is always the
most difficult. Getting yourself to make the first call of the day is normally
the biggest hurdle. After you make the first call, you realize it was not as
difficult as you had imagined. Prospecting is fun after a few positive calls.
You will often find receptive people on the other end of the line who are open
to your call. Just do it, break through the barrier, your confidence will soar
when you realise that prospecting is the trigger to all successful selling.

4. Set prospecting goals. Set
a specific goal of what you want to happen on each call. Know what you want
that prospect to do. It is difficult to achieve prospecting success without
clearly defined objectives.

5. Prospecting is a numbers
game. I guarantee you that the more prospecting you do, the
more deals you will secure. Prospecting allows you to plan your income and
results. If you track your prospecting efforts, you will find that you have
clear ratios in your sales efforts. Once you know how many prospecting calls
you need to make in order to get a client presentation and therefore a closing
opportunity, then you have a good measure of how to achieve any sales
target.

Prospecting is truly the starting point of success in any sales profession. I
teach a simple sales model – the more you effectively prospect, the more
presentation opportunities you will get, and therefore the more sales
you will close.